Enel signs 85 MW of capacity storage agreements with PG&E

Under these agreements, Enel will build the Kingston, Cascade, and Sierra stand-alone lithium-ion energy storage projects in California, with an overall installed capacity of 85 MW in order to increase the reliability of Pacific Gas and Electric’s grid. The three projects will expand the Group’s energy storage portfolio, which includes stand-alone battery storage systems, as well as projects combining storage with both thermal and renewable facilities. The storage facilities are expected to be operational by 2023, pending local and regulatory approvals.

“The signing of these agreements marks an important step forward in our Group’s plan to strengthen its presence in the energy storage market and expand this business in the US, and California in particular, which are at the forefront in the development of this market” said Enrico Viale, Head of Enel Global Thermal Generation. “Utility-scale storage applications are a key focus area for Enel in view of the great benefits they offer in terms of grid balancing and reliability. We are proud of the progress we have made in this field so far and look forward to growing our storage portfolio even further.”

The energy storage systems will connect directly to PG&E’s grid and will charge the lithium-ion batteries when there is an abundance of renewable energy. The energy stored in the batteries will then be delivered back to the grid during times of peak demand, increasing grid reliability, while also easing congestion.

The projects have been developed by independent developer Sovereign Energy Storage and are expected to be operational by 2023, pending review and approval by the California Public Utility Commission as well as local and regulatory agencies.

The three projects will contribute to the expansion of Enel’s energy storage portfolio, which includes both stand-alone battery storage systems, as well as projects combining storage with both thermal and renewable facilities.

PG&E has awarded CSAs to three other projects alongside the three contracts awarded to Enel, for a total capacity of 165 MW. These awards are the result of an open competitive solicitation process run by the utility to procure 580 MW of energy storage capacity by 2020, while contributing to the 2013 California Public Utility Commission state goal of adding 1.3 GW of energy storage by 2024.

The CSAs with PG&E will strengthen Enel’s presence in California’s energy storage market, following the signing of an Energy Storage PPA with the utility San Diego Gas and Electric for the 3 MW/12 MWh Pomerado project located in San Diego County.